Preface

It is said that 19 century is as the age of Industrial Revolution, 20 century is as the age of mass production and 21 century is as the age of the IT (information technology).

Between　1990　and　2000 are being called with lost 10 years in Japan.

For that time a land bubble economy collapses, and keeps being worried about the long-term depression, and the signs of recovery can't be seen yet.

On the other hand America continued the long-term economic growth around IT.

It will come the wonderful prosperity as similar as America, if only IT is popularized in Japan, many scholars and mass communication have argued.

Well, this year is 2nd years in 21 century; will it proceed as expected in the argument?

The answer is no.

New economy

The reason why the stagnation of 10 years so called as the lost 10 year is given as follows; Many Japanese managers neglected original development of technology, ran to the bubble speculation, hide the defective property of the bubble, extended treatment it.

As such, Japanese management had lowness of the morals that it remains in bargaining in the inside.

On the other hand, it is said that American managers have high morals, continued the challenge with IT application such as business models one after another in such cases as net business, management strategy, finance, electric power liberalization.

It was highly praised that these effort created eternity economic prosperity.

Japanese mass communication, scholars and managers astonished at creation of new economy that was the economy without circulation depression that not exist in conventional economic theory.

However, a result is surprising.

Many scandals are clear one after another such as the bankruptcy of ENRON, the adhesion of worldwide account office Arthur Anderson with those injustice enterprises and the Californian electric power crisis American stock prices are sluggish now, and the economy index is mixing strong and weak then it is clear that the gross domestic product in U.S.A. is lowering.

An IT bubble depression really comes.

It is said that obviously it was an error about the new economy theory.

A Californian electric power crisis

State of California started the electric power liberalization for all customers as an advanced area of the electric power liberalization from April 1998.

But many cases occurred one after another after April, 2000 such as shortage of power supply ability, a sudden rise in the wholesale electric power charge, the income and costs aggravation of the private electric power company, a management crisis, and so on.

At last IT caused big confusion in January 2001 such as big power failure of the several million houses of whole area of California that contained silicone valley.

It has been increasing electric power demand in accordance with IT developing centered to the Silicon Valley.

On the other hand, past 20 years, large power plant construction weren't being done due to against the environment group, and it is the biggest cause to fall into the short supply.

It is irony result that cause is unbalance of IT and environment that are key word of 21 century.

A bankrupt of ENRON

Enron succeeded in business from a little gas supply company in the southern part of America.

And it became an eminent electric power company in America to meet with the electric power liberalization.

It is needless to say that they were surprised at sudden failure of Enron.

It became clear that unbelievable injustices were done such as impropriety rise of stock with adhesion of the enterprise and the account office, get big profit by abuse of managing staff.

Vicious operation was really done worse than the Japanese bubble.

It was proved that it wasn't scarce a profit guidance type member of the Diet in America which to be believed as liberal.

Summary

Though it expected to bring a society revolution since the Industrial Revolution, IT disclosed one negative side that it was abused in the disgraceful affair by the stock prices operation that is called an IT bubble.

Though an account office, an auditor, and so on have a check function about the management, it can say that it is a big fault of the capitalism that such a disgraceful affair doesn't end.

What is a solution?

I think that it is only Oriental philosophy, wisdom, virtue, and the realization of the idea of benevolence.

It won't be here except that only the talented people who have high ethics are made a leader's qualification.

September 8, 2002 Y.Noguchi

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